Tag Archives: Product Recall

Now You See It (Now You Don’t?) – Recent Insurer Efforts to Void Coverage Based on New York Rescission Law

In recent months, insurers have increasingly used New York rescission law as a means to not only deny coverage for specific claims, but also to void any protection an insurance policy may provide for other losses down the road. For example, H.J. Heinz Company recently found itself without coverage for a $30 million recall after … Continue Reading

Fear of the Unknown [Cause of Contamination]: Whether an Unknown Cause of Loss Constitutes an “Occurrence”

Commercial general liability policies typically provide coverage to insureds for losses resulting from property damage caused by an “occurrence,” usually defined in the policy as “an accident, including continuous or repeated exposure to substantially the same harmful conditions.” In the context of food recalls, however, the exact cause of the food damage, whether contamination, spoilage … Continue Reading

Foster Poultry Covered For Government-Mandated Shut Down

As discussed in a February 1, 2016 posting, the court in Foster Poultry Farms v. Certain Underwriters at Lloyd’s, London, No. 14-cv-953, 2015 WL 5920289 (E.D. Cal. Oct. 9, 2015) held that losses associated with alleged noncompliance with federal sanitation regulations were covered by the “accidental contamination” and “government recall” provisions of a food contamination insurance policy. … Continue Reading

Insureds Find Place to Roost in Foster Poultry Contamination Case

Insureds Find Place to Roost in Foster Poultry Contamination Case, Westlaw Journal Insurance Coverage January 15, 2016 Article discussing the insurance implications of food contamination events, including product recalls, government investigations and litigation. Large-scale food safety issues have been hard to miss in the news lately. Chipotle’s multi-state E. Coli outbreak and listeria monocytogenes found … Continue Reading
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